Q2 real estate sales still up despite properties taking longer to sell

More Cayman Islands real estate properties were transferred in the second quarter of 2025 compared to the first quarter even though it is taking longer to sell them.

Statistics for the second quarter of the year showed that it took more than five months longer on average for a property to change hands that it did between January and March.

The figures, compiled by real estate body Cayman Islands Real Estate Brokers Association, showed that the average time to sell a home had jumped from 252 days to 416 – a 65% increase over the period.

But Michael Joseph, the owner of Property Cayman, said the trend did not mark a slowdown, rather that buyers were being more careful and were less prepared to take risks.

He added that different segments of the market had reacted differently to a variety of pressures.

Joseph said, “Each of these markets and the price points with each of them react and interact with each other based on the international and external pressures.”

He said interest rates had not come down and the cost of living had gone up, but incomes had not kept pace, which had led to more caution in the mid- and entry-level parts of the market.

But, he said, a total of 226 properties changed hands over the period – a 13% increase on the first quarter.

May was the strongest in quarter two, with 92 deals closed worth a total of $121 million.

There were 322 new properties on the market over the second quarter, 190 down on the 512 new listings in the first three months of the year.

“This isn’t a sign of worry, but rather a recalibration after the initial surge in activity earlier this year,” Joseph said.

“There was a quiet confidence running through the quarter.

“Transactions were up, dollar volume held firm, and despite some shifts in pace, the belief in Cayman’s long-term value stayed strong.”

He added that sellers in the $10 million-plus sector of the market were equipped to sell at their own pace.

“They are not in a rush to sell and are prepared to wait for the right buyer,” Joseph said.

He added that domestic property a year ago went for an average of about $1,238 per square foot, which had slipped to $1,156 per square foot.

But Joseph said that prices had “started to soften a little” through economic factors and uncertainty in the US over “Trump turbulence” and increased international turmoil.

“It may not seem very significant … that’s not that much of a difference, but when you’re talking about a 10,000-square-foot house, that’s an $815,000 difference,” he said.

“In that particular sector, there’s a little bit of a softening. Sales are becoming a little bit more realistic and buyers are becoming more confident.”

But he insisted, “The luxury market, especially properties over $3 million, remains solid … May in particular saw a flurry of high-end activity – less window shopping, more real commitment.”

Still, he said, the sub-$3 million market continued to drive most of the sales activity.

“These buyers are often navigating interest rates carefully, comparing properties with more scrutiny and negotiating firmly,” Joseph said.

“It’s not that they’re hesitant, it’s just that they are paying attention, and rightly so.”

He added, “Cayman is quietly confident and things are ticking along quite well, regardless of what’s going on internationally and nationally.”

He said the summer had been “very busy” and better than the same period in 2024, with people seeing Cayman as a safe haven from international turmoil for “security refugees” and “financial refugees” from elsewhere.

Joseph said, “I attribute that to ongoing low supply in the market, as well as global uncertainty.”

Kim Lund, a veteran and award-winning real estate professional and broker/owner at RE/MAX, agreed that the economic climate was a key factor.

He said, “It’s all to do with the economy and it’s all economics – the fact that costs are a lot higher than they have been and haven’t gone down slows everything down.”

Lund added that there was generally more activity in the market over the winter months because there were more people in Cayman and “more people equals more sales”.

He said, “Costs are still high and until interest rates start coming down and costs start coming down, activity will be muted or slower than it normally would be.”

But he added, “I think the underlying market is still strong, but there is a lot of uncertainty now, between interest rates, tariffs in the US and costs.

“It’s too volatile right now – people are less inclined to buy until they more comfortable with the economy and costs.”

Brian Wight, the president of CIREBA and owner of Better Properties, backed Joseph’s view that buyers were more cautious and reflected trends across the real estate sector.

He said buyers are being thorough in their search for the right property before making the final decision to purchase.